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CEOs

01/15/18 8:59 PM

#83105 RE: CEOs #83102

I also have quite a bit of experience with shell and tube as well as plate exchangers. Depending on the crude used, I can tell you that over time, transfer efficiency decreases dramatically, which can have a huge impact on processes requiring significant heat recovery to minimize cost impacts. Again, I don’t care if I am not believed because I KNOW this to be true. Seen it first hand many times. A new design and a new CDU like with mmex could have a very high starting efficiency and thus low cost.
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jmjjw

01/15/18 9:00 PM

#83106 RE: CEOs #83102

Desperation does not help MMEX's case in this matter - the patently false claim, and deliberate misrepresentation of facts only reeks of MMEX promotor's attempts to side-step, and tap dance for distraction purposes away from MMEX's fatal flaws.

A refinery complex is composed of multiple units - some even redundant, because of their critical role in the complex's operation.

When a particular unit is built, it undergoes routine operation and maintenance. About every two years, a turn-around is performed on all, or part of a unit. Equipment is replaced for various reasons, upgrades are performed, cleaning and inspection is done, and the unit brought back into like-new spec, then it gets restarted.

On longer intervals, normally 5-10 years, entire units get replaced with modernized designs, which improve throughput, reliability, operating efficiency, and energy efficiency.

The refinery business is a razor-thin margin business - operators continually modernize to squeeze every penny of profit out of operations. MMEX clearly doesn't understand this - the Phase I unit is a single-stream system that lacks even the most basic operational reliability elements. It is also one of the lease energy efficient designs possible - focus on the straight-run diesel stripper - a reboiler. It is a comedy.

The claim that a refinery unit, in any U.S. based refinery has been operating for 40 continuous years is laughable, and demonstrates either a total lack of knowledge, or deliberate intent to misinform.

Again. From someone who has actually worked in upstream, I can tell people that corrosion and sedimentation can have a huge cost and efficiency impact on oil production facilities and downstream refineries. Maintenance does have a positive impact, but I can tell people that equipment NEVER gets back to the original efficiency and productivity unless replaced. I don’t care if people don’t believe me or not. I know this is the case. 40 years is a long long time in production. Mmex